New Employees With an Annual Salary of 1 Trillion Won - Chapter 105

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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Chapter 105. Things Money Can’t Buy (5)

 

During one week, a total of 7 mobile phone manufacturers visited Tiger Fund.

 

Samjin Electronics, Nokia, Motorola, Ericsson, HTC, and even Sony and Panasonic.

 

I led all the negotiations.

 

And was able to achieve quite satisfactory results.

 

“General Manager, we’ve concluded license contracts with 3 companies.”

 

“Three companies accepted the standard contract terms.”

 

“Nokia, Motorola, and Ericsson all accepted the standard contract.”

 

Although we couldn’t conclude license contracts with Korean companies.

 

This wasn’t something to worry about at all, and was actually a result that could pressure Korean companies.

 

“These are the companies ranked 1st to 3rd globally.”

 

“American and German companies. Thanks to Tiger Fund’s reputation, they seemed to conclude contracts without much hesitation.”

 

“With Tiger Fund as backing, they must have thought we couldn’t steal their patents.”

 

“That’s part of it, but they also accurately recognized the value of Nexfin’s patents. And they seem to have realized that a 2-3% royalty is actually quite cheap.”

 

This wasn’t simply a contract to use a few patents.

 

It was a contract where they could use Nexfin’s various patents as a package for just 2-3% royalty.

 

“The expected revenue should be quite substantial.”

 

“We’re expecting over $100 million in annual royalties. While revenue is limited since we can’t collect royalties on older products, as time passes, older models will gradually disappear from the market, and as the sales proportion of new products increases, royalty revenue will grow year by year.”

 

It’s impossible to make new mobile phones by circumventing our patents.

 

Of course, it would be possible if they used older technology, but there would be a clear functional difference compared to other manufacturers’ products, so who would make phones that way?

 

“Indeed, this kind of contract is possible because we’re not manufacturers ourselves.”

 

“Since we’re not competitors, we can secure one-sided license revenue without complex patent exchange contracts like other companies.”

 

“But it’s a bit unsettling that other mobile phone manufacturers haven’t come yet. Especially Korean mobile phone manufacturers are being too quiet.”

 

They must be watching and waiting.

 

Since the global top 1-3 mobile phone manufacturers had concluded contracts, Korean companies had no choice but to move as well.

 

“I’m planning to announce a deadline for license contract conclusion. If they don’t conclude contracts by the end of this month, I plan to raise the standard contract royalty rates.”

 

“It’s a good strategy to move companies that are hesitating, but there might be companies that give up on contracts altogether.”

 

“That’s exactly the plan – to raise royalty rates targeting such companies.”

 

There might be companies that ignore patents and produce new products.

 

If such companies emerged, we could extract several times more money than the standard contract.

 

“I see you’re planning to handle it legally.”

 

“It’s clear patent infringement. And since several mobile phone manufacturers have already concluded license contracts, the structure is definitely advantageous to us.”

 

“When other companies are paying royalties to use the technology, we must punish those attempting free rides with legal action. For that, we’ll need to recruit law firms in advance.”

 

If they contract now, they only need to pay 2-3% royalty.

 

But the moment it goes legal, royalties increase several times over.

 

These were methods mainly used by technology-holding companies like Qualcomm or ARM, and we had sufficient technology to use that strategy as well.

 

“We need to recruit law firms in the US, Korea, and Europe in advance to prepare.”

 

“Actually, if we just win in the US, problems elsewhere will resolve themselves. So let’s focus our strategy on the US.”

 

“I’m more worried about Korea than the US. Most of Korea’s mobile phone manufacturers have been large corporations in Korea for a long time.”

 

No matter how high Tiger Fund’s reputation was.

 

It couldn’t surpass Samjin Electronics’ prestige in Korea, and not just Samjin Electronics, but GL Electronics and Daehyun Electronics as well.

 

They were all traditional large corporations that dominated Korea’s political and business circles.

 

“It wouldn’t matter if they only did business in Korea. But Korean large corporations are desperate for overseas expansion. The moment they get a bad reputation in the US even once, overseas expansion becomes difficult, so don’t worry about that.”

 

“Of course, the best outcome would be concluding license contracts with everyone.”

 

While the General Manager and I were strategizing for a long time.

 

A fund employee informed us of a contact from Samjin Electronics.

 

“Samjin Electronics contacted us saying they want to discuss license contracts again.”

 

“Samjin Electronics is finally moving. When and where did they want to meet?”

 

“They left the location and time entirely up to us. Instead, they wanted to meet as soon as possible.”

 

There was no need to drag out time.

 

It was all about whether they’d accept the standard contract or not.

 

“Tell them they can come anytime.”

 

“I’ll convey that.”

 

The employee returned to their seat and spoke with Samjin Electronics.

 

And came back with a very unexpected answer.

 

“They say they’ll come tomorrow immediately.”

 

“They must be quite urgent. What time did they say they’d come?”

 

“They said they’ll visit Tiger Fund Korea Branch at 11 AM tomorrow.”

 

“If it’s alright, I’d prefer to meet at 5 PM.”

 

“I’ll convey that.”

 

As expected, contracts with global mobile phone manufacturers had made Samjin Electronics urgent.

 

Samjin Electronics was suddenly starting to move quickly, and the more they did, the higher the possibility of concluding contracts in the direction I wanted.

 

“Employee Lee will be busy tomorrow too. But why did you set the negotiation time for 5 o’clock?”

 

“If I finish Nexfin and Rollbook work as quickly as possible, that’s when I’ll be available.”

 

I couldn’t break my routine just because of negotiations with Samjin Electronics.

 

And since I held the initiative in negotiations, I didn’t want to break my routine even more.

 

“Do well tomorrow. I’ll cheer you on from the side.”

 

“Don’t you have any urgent business?”

 

“Nothing particular tomorrow.”

 

Seeing the General Manager resting comfortably made me slightly uncomfortable.

 

But since the General Manager wasn’t someone I could control, I swallowed my discomfort and focused on work again.

 

Well, someday.

 

The day might come when I control the General Manager too.

 

***

 

Exactly 4:55 PM.

 

It was the time I arrived at Tiger Fund after finishing work at Nexfin and Rollbook.

 

When I went up to the office, the General Manager pointed at his watch instead of greeting me.

 

“Employee Lee, people from Samjin Electronics just arrived. You came at perfect timing.”

 

“I’ll just put down my bag and go greet them right away.”

 

“I’ll watch from upstairs.”

 

I put my bag down in the exact position and went down to the lobby.

 

But the lobby atmosphere was unusual.

 

The number of security guards was different from when the IP Team Leader came, and the class of vehicles was also very different.

 

“Someone higher up must have come.”

 

“Deputy Branch Manager! It seems Chairman Oh Hee-geon came personally.”

 

“What do you mean?”

 

Before I could hear an explanation, the car door opened.

 

And then a giant of Korea’s business world revealed himself.

 

“Nice to meet you. I’m Lee Jung-hoo, serving as Deputy Branch Manager at Tiger Fund Korea Branch.”

 

“Ah! I’ve heard a lot about you. You’re quite remarkable for such a young person.”

 

Thud thud thud thud!

 

The sound of running footsteps from afar.

 

It was the sound of the General Manager, who had been watching from upstairs, hurriedly coming down the stairs.

 

“I’m late with introductions. I’m Kang Dong-ju, in charge of Tiger Fund’s general management.”

 

“An even more remarkable person has appeared. I was quite pleased to hear that a Korean had taken charge of a fund that dominates Wall Street.”

 

This was something I never imagined.

 

I had expected the IP Team Leader or perhaps the Strategic Planning Director above him to come.

 

But I never thought the chairman of Samjin Group, the pillar and new number one business group in Korea, would personally visit.

 

“Please come inside.”

 

“Shall we? This isn’t really a conversation for the lobby. Heh heh heh.”

 

As we escorted Chairman Oh Hee-geon inside.

 

The General Manager and I quickly exchanged glances.

 

We were discussing whether Samjin Electronics was using the same strategy of putting their chairman forward, just as we had done with Chairman Robertson.

 

“You don’t have many employees. It’s truly impressive that a place with less than dozens of people generates sales exceeding hundreds of billions.”

 

“They’re all talents who can do the work of a hundred people. Especially the Deputy Branch Manager is a talent among talents who can do the work of ten thousand, which makes it possible.”

 

“That’s possible because it’s the financial industry. But in manufacturing, you can’t just use only talented people. Everyone has their use except thieves and robbers.”

 

Even his casual remarks sounded like wise sayings.

 

It meant that running a large-scale company requires various types of employees, and it sounded like even the smallest gear has its purpose.

 

“Such a structure seems possible because the leadership maintains a good center.”

 

“That’s why I came personally this time. I came to seek advice on how to maintain Samjin Electronics’ center.”

 

“How could we dare to give advice?”

 

It was a different feeling from Chairman Wang.

 

Chairman Oh Hee-geon was the brightest shining star in Korea’s business world.

 

“Let’s have an honest conversation. All global mobile phone manufacturers have signed license agreements with Nexfin, but is there a reason to sign contracts while paying 2-3% royalties? That’s what I’m curious about, so I came personally.”

 

“There’s no guarantee that workaround patents can be created, and they probably signed contracts thinking that cost would be higher than the royalty fees, don’t you think?”

 

“It’s an important patent, but I’m still wondering if we really need to pay that much in royalties.”

 

It was understandable that he’d be conflicted.

 

Samjin Electronics probably owned dozens of times more core patents than Nexfin possessed.

 

And since Nexfin was essentially a startup company, it was natural to have more doubts.

 

“While you might be able to somehow create new products coming out right now without a license agreement, if you think beyond that, you must join hands with us.”

 

“You’re confident.”

 

“I’m confident that Nexfin has preempted the direction of the mobile phone market.”

 

It was an incredibly arrogant statement.

 

Especially something that shouldn’t be said in front of Chairman Oh Hee-geon, who was known for his foresight.

 

Nevertheless, I went ahead and said it.

 

Because the future of the mobile phone market was already being drawn.

 

“Could you tell me what aspects you’ve preempted?”

 

“I can’t go into details about that. But there must be a reason why not only global mobile phone manufacturers, but also MS and Apple joined hands with us, right?”

 

“Hmm, so in the Deputy Branch Manager’s view, does Samjin Electronics’ direction seem to be on the right track?”

 

Samjin Electronics already had a perfect structure.

 

From semiconductors to small components. One of the few companies that could manufacture all of these in-house.

 

Moreover, all of these created perfect harmony, and the rotation speed of the gears was very stable.

 

“It’s not inferior at all compared to global companies. And mobile phones will become Samjin Electronics’ biggest cash cow in the future.”

 

“While we’re number one in Korea, our global market share is still quite low.”

 

“If you leverage Samjin Electronics’ strengths, you can rapidly increase market share.”

 

“What do you think those strengths are?”

 

“Technology and quality. If you apply outstanding technology that competitors can’t match, even global number one is possible. To achieve that, you need to improve completeness, and Nexfin’s patents are absolutely necessary.”

 

Even without joining hands with Nexfin, the results wouldn’t change dramatically.

 

But it could accelerate the timing of harvesting fruits and make the process somewhat smoother.

 

“So you’re saying we can become global number one by joining hands with Nexfin.”

 

“At minimum, you can secure much higher global market share than now. Of course, all decisions depend on the Chairman’s will. If you think a license agreement isn’t necessary, you don’t have to do it.”

 

“You’re very confident.”

 

Chairman Oh Hee-geon looked at me quietly and spoke.

 

Though he had a much smaller build than me, I felt overwhelmed.

 

If this had been my first time feeling this way, I might have been intimidated, but having met too many global CEOs, I could maintain my poker face.

 

“Mobile phones with new functions are continuously being released or developed. Like MP3 phones, camera phones, TV phones. And Samjin Electronics has the technology to make all these phones.”

 

“We could somehow make them even without Nexfin’s patents.”

 

“But ultimately, these phones are just part of the process. Eventually, the era of multifunctional phones that include all features will come. Will it still be possible without Nexfin’s patents then?”

 

Currently, only phones specialized in one function were being released.

 

But ultimately, people would want more, and to meet customer needs, there would be no choice but to create phones with all functions.

 

“So you’re saying a license agreement is absolutely necessary.”

 

“The royalties will definitely not be a waste.”

 

“Good. Having this direct conversation, I understand why we need to join hands with Nexfin.”

 

“You absolutely won’t regret it.”

 

“Instead of a condition, let’s have meals together occasionally. I always tell my subordinates to give honest advice, but no one actually does it. This makes it difficult to assess situations objectively.”

 

“If the Chairman calls, I’ll make time anytime.”

 

Chairman Oh Hee-geon turned his head.

 

Looking at the General Manager instead of me, he made one proposal with a very serious expression.

 

“How much would it take to acquire Nexfin?”

 

“There are absolutely no plans for sale. And Nexfin’s value is much higher than the Chairman thinks.”

 

“Haha, I heard it started as a small department of GL Group. Let me offer 100 times more than the acquisition price back then.”

 

A 100-fold return.

 

It was a proposal that would tempt anyone.

 

But considering Nexfin’s actual value, 100 times wouldn’t even come close.

 

Nexfin had become a company that simply couldn’t be bought with money alone.

 

“This license agreement alone is generating over $100 million in fixed annual revenue. We’re also generating stable sales through collaborative projects with MS. To acquire Nexfin now, you’d need to offer at least $2 billion. Of course, we have no intention of selling even at that amount. Nexfin can grow into a company worth $10 billion, $100 billion or more.”

 

“If you had received an acquisition offer for Nexfin when you sold the camera phone patents, would you have sold?”

 

“Back then, I probably would have seriously considered it. But that’s already in the past.”

 

Chairman Oh struck his knee hard with his palm.

 

It was a gesture full of regret, and he even clicked his tongue as he continued speaking.

 

“Tsk tsk tsk, this is why I should have stepped in personally. What should I do with the people who failed to recognize and missed a golden goose like Nexfin?”

 

“There’s even a group that spun off and sold Nexfin from their conglomerate, so how can you blame them?”

 

“It’s just frustrating. Let’s see each other’s faces often in the future. Well then, I’ll get going now.”

 

We saw Chairman Oh off.

 

Chairman Oh boarded his vehicle with a face where satisfaction and regret coexisted.

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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